SNA-93 Framework

1. SNA-93 Framework Review and mapping of key gender issues Workshop on Household Surveys and Measurement of Labour Force with Focus on Informal Economy Maseru, Lesotho, 14-18 April 2008

2. Overview • Introduction to SNA 93 Framework • Relevance of SNA 93 for labour statistics • SNA 93 production boundary • Gender implications for labour statistics • Improving labour statistics using SNA 93 • SNA 93 treatment of Informal Sector • Beyond SNA 93: Informal Economy • Gender relevance of informal economy • Concluding remarks

3. Introduction: SNA 93 Framework Why SNA 93 Framework matters • Comprehensive accounting framework • Based on a coherent, consistent and integrated set of concepts, definitions, classifications and accounting rules • Allows for monitoring and analysis of economic activities • Focuses on transactors and transactions taking place • Transactors: individual economic agents (institutional units) and institutional sectors • Transactions: economic activities • Basis for macro-economic analysis, decision-making and policy making

4. Overall relevance of SNA 93 Framework Why SNA 93 Framework matters • Provides conceptual base for definitions • Economic activities • Economically active population • Dominant framework for measuring work • Decisions on economic policies, distribution of government expenditures to sectors of population and activities depend on SNA • Activities not properly captured, not properly valued in terms of their contribution to economy • Population group not properly captured, not properly taken into account in budget allocation

5. Relevance of SNA 93 for labour statistics Definition of economic activity “The economically active population comprises all persons of either sex who furnish the supply of labour for the production of goods and services, as defined by the SNA 1993 during a specified period.” Implications • SNA Production boundary defines what activities are considered as economic and thus, who are considered to be economically active • Guarantees consistency between activity concepts of employment statistics and production statistics • But limits definition of work with implications for measurement of women’s full contribution to society

6. SNA 93 Production Boundary All Activities General production boundary Productive Rule: if the performance of an activity cannot be delegated to another without the same desired results/outcomes Economic Non-economic Defines what are productive and economic activities Basic human activities, natural processes Non-productive SNA production boundary

7. SNA 93 Production Boundary Productive activities Economic Non-Economic ALL goods* ALL services for sale, barter or in-kind pay Some services for own-final consumption Some services for own final consumption Implications for production of labour statistics Activities covered to determine economically active population

8. SNA 93 Production Boundary Productive activities Economic Non-Economic ALL goods* ALL services for sale, barter or in-kind pay Some services for own final consumption Some services for own final consumption Services such as caring, cleaning cooking, transport not included in definition of work Non-market activities often missed, in particular: Goods for own consumption, and some services included in SNA are often missed in data collection instruments • Gender implications for labour statistics: • Scope • Measurement

9. Scope of concept of Economic Activity Includes intermediate inputs (*) If quantity significant in relation to total supply

10. SNA 93: Non-market activities included/excluded

11. Improving coverage of women’s work in labour statistics using SNA 93 • Scope: Exclusion of services for own consumption • SNA 93 recognizes importance of these activities • SNA 93 recommends measurement and valuation of production outside the SNA boundary through satellite accounts • Production can be measured and valued on basis of inputs or outputs through • Time-use surveys • Household expenditure surveys • Household budget surveys • Other surveys collecting data on household production

12. Improving coverage of women’s work in labour statistics using SNA 93 • Measurement: Fully implement SNA classification of economic activities, particularly those for own-consumption • Review definition of work used in questionnaires • Ensure questions are designed in such a way as to capture secondary activities, particularly where women are regarded as housewives, and among those engaged in agricultural activities • Train interviewers on definition of work, including examples of economic activities for own-consumption that are to be captured, and to probe for secondary activities

13. Improving coverage of women’s work in labour statistics using SNA 93 • Measurement: Fully implement SNA classification of economic activities, particularly those for own-consumption • Note that distinction between own-account production of goods and services may be complex and overlap • Example: Preparation of a meal for immediate consumption is a service, but preparation of food for preservation is included in SNA economic activities. • Activities likely to be excluded:

14. Example: Pakistan –Labour Force Survey 2005-06 Captures both primary and secondary activities, including production of goods for own consumption…

15. Example: Pakistan –Labour Force Survey 2005-06

16. Example: Bangladesh Restricted definition: Excludes own household economic activities SNA definition: Includes own household economic activities

17. Example: Bangladesh Restricted definition: Excludes own household economic activities SNA definition: Includes own household economic activities

18. SNA 93 and Informal Sector Background • SNA does not make a distinction between formal and informal sectors, but • SNA 93 rev.1 recognizes importance of informal sector to the economy of many countries • Recognizes need for a coherent set of concepts and definitions on informal sector consistent with overall SNA Framework to measure contribution of this sector to economy, employment, income generation, and for policy analysis and formulation

19. SNA 93 and Informal Sector Treatment of Informal Sector • Follows characterization of informal sector from resolution of 15th ICLS on statistics of employment in informal sector and work of Delhi Group on Informal Sector Statistics • Defined as sub-sector of the SNA institutional sector ‘households’ (unincorporated household enterprises) • Defined in terms of characteristics of production units/enterprises (enterprise approach) rather than characteristics of persons or their jobs (labour approach) • Definition in terms of enterprises to provide link with SNA Framework

20. Beyond SNA93: Informal Economy From labour perspective • Need to capture and measure informality of employment, both in enterprises and in employment relations • Thus, definition and measurement of informal sector is complemented with concept of informal employment, defined in terms of jobs • Informal Economy includes both employment in informal sector and in informal jobs (informal employment) • Economic activities to determine informal employment and employment in informal sector follow SNA 93 production boundary

21. Informal Economy: Gender relevance Differences between women and men in informal economy: • Women are disproportionately represented in informal economy, both informal sector and informal employment • Reasons for turning to informal economy • Access to resources • Job segregation • Characteristics of activities and businesses • Working conditions • Apparent greater disparities in income • Exposure to violence and harassment • Exposure to unsanitary conditions

22. Informal Economy: Gender relevance Special issues to consider • Women are engaged in those informal activities that are most difficult to capture and measure • Home-based work, outwork, street vending • Women are often engaged in second or multiple jobs, especially in rural areas • Women’s activities in informal sector may overlap with non-market work and unpaid housework • Women’ often carry work on small scale and on household premises

23. Concluding remarks • SNA 93 provides cohesive framework for measuring women’s and men’s work, and provides links to informal sector measurement • To improve labour statistics, including coverage of women’s economic contributions: • Ensure compliance with SNA economic activities • Consider measurement of services for own-consumption (SNA non-economic activities) through satellite accounts • Focus on informal economy to capture informality of employment

24. Thank you!